Goldman Sachs plans callable exchangeables on Kansas City Southern

By Marisa Wong

Madison, Wis., Feb. 7 - Goldman Sachs Group, Inc. plans to price 0% callable exchangeable equity-linked notes tied to the common stock of Kansas City Southern, according to a 424B2 filing with the Securities and Exchange Commission.

The notes are expected to mature in seven years.

The notes will be callable beginning in February 2019. If called, the redemption price will be the greater of the exchange value on the redemption notice date or par of $1,000, payable in shares of Kansas City Southern stock or, at the issuer's option, in cash.

The exchange value on any trading day will be the product of the exchange rate times the closing price of the stock on that date. The exchange rate will be 1,000 divided by the product of (i) 1.42 times (ii) the initial stock price.

The notes are also exchangeable in whole or in part for a number of shares of Kansas City Southern stock equal to the exchange rate or, at the issuer's option, the exchange value in cash.

If the notes are not called or exchanged, the payout at maturity will be the average of the averaging date prices on the three consecutive trading days ending on the determination date, payable in cash. Each averaging date price will be the greater of the exchange value on that date or $1,000.

Goldman Sachs & Co. is the agent.

The Cusip number is 38147QMF0.

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